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In-Vehicle Infotainment: A USD20 billion market by 2033 underpinned by increasingly sophisticated and versatile devices

  • Internet of Things
  • IoT
  • Hyperconnectivity
  • Connected Vehicles
  • Automotive
  • Connected Car
  • Dashboard
  • Hotspot
  • In-Vehicle Aftermarket
  • In-Vehicle Audio
  • Head Unit
  • In-Vehicle Infotainment
  • In-Vehicle Video
  • In-Vehicle Wi-Fi
  • Infotainment
  • Nikita Singh
  • Matt Arnott
This report provides Transforma Insights’ views on the In-Vehicle Infotainment market, accessed through the Vehicle Head Unit or through aftermarket devices. In-vehicle Wi-Fi and media streaming has become increasingly popular amongst consumers over the past decade. In-vehicle Wi-Fi allows passengers to stream media, download applications and internet access. It also allows for media consumption in the vehicle. Previously, media used to be owned, nowadays many consumers choose to stream this media. To make use of this media whilst in a moving vehicle users will require a reliable, high bandwidth connection, driving demand for in-vehicle infotainment. This trend is likely to continue in the future as bandwidth becomes cheaper. However, the ubiquitous smartphone is likely to limit the size of this market, particularly in vehicles with Apple CarPlay or Android Auto installed. Vehicles compatible with smartphone mirroring can take advantage of the vehicle’s controls to access their media. Some drivers will simply choose to use their smartphones to browse the internet or stream media instead. Nonetheless, drivers are increasingly being discouraged from the distractions of smartphone usage whilst driving. Those who wish to lower their risk of an accident or falling foul of local traffic laws will be keen to make use of In-Vehicle Infotainment on the Vehicle Head Unit. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

Report summary

This report provides Transforma Insights’ views on the In-Vehicle Infotainment market, accessed through the Vehicle Head Unit or through aftermarket devices.

In-vehicle Wi-Fi and media streaming has become increasingly popular amongst consumers over the past decade. In-vehicle Wi-Fi allows passengers to stream media, download applications, and have internet access. It also allows for media consumption in the vehicle. Previously, media used to be owned, nowadays many consumers choose to stream this media. To make use of this media whilst in a moving vehicle users will require a reliable, high bandwidth connection, driving demand for in-vehicle infotainment. This trend is likely to continue in the future as bandwidth becomes cheaper.

However, the ubiquitous smartphone is likely to limit the size of this market, particularly in vehicles with Apple CarPlay or Android Auto installed. Vehicles compatible with smartphone mirroring can take advantage of the vehicle’s controls to access their media. Some drivers will simply choose to use their smartphones to browse the internet or stream media instead. Nonetheless, drivers are increasingly being discouraged from the distractions of smartphone usage whilst driving. Those who wish to lower their risk of an accident or falling foul of local traffic laws will be keen to make use of In-Vehicle Infotainment on the Vehicle Head Unit.

The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

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Key market developments in the In-Vehicle Infotainment Application Group

The report examines key factors that are influencing the development of the market, including:

Overview

This section of the report first defines in-vehicle infotainment systems and explains how many consumers now choose to stream media, instead of owning it (which requires a reliable and high-bandwidth connection). It also explains how this trend will continue in future, owing to factors such as bandwidth becoming cheaper. It then provides a survey by AutoPacific analysing vehicle owners’ interest across 11 different connected vehicle features.

Passengers are seeking infotainment experiences that are more intuitive and convenient

This subsection begins with an explanation of how in-vehicle infotainment systems have become a key differentiating aspect in the competitive automotive market, with more features added to them. It also asserts that automotive OEMs are also consistently developing infotainment systems (with features like gesture recognition) to further encourage their use.

4G and 5G allow for constant and uninterrupted media streaming

This subsection focuses on the widespread coverage of 4G and 5G networks, which enable constant in-vehicle streamed media. It also affirms that the adoption of these systems is more common in developed countries of North America and Europe.

Commercial use of vehicle infotainment is focused on productivity applications

This subsection explores the commercial use of in-vehicle infotainment systems, which are not used for media streaming (in most cases) but are rather focused on maintaining employee productivity in the field. For instance, these systems ensure workers’ access to critical web applications and email.

Smartphones are limiting the size of the consumer market

This subsection primarily focuses on how the easy availability of smartphones has limited the scope of the in-vehicle infotainment consumer market since this allows customers to use their smartphones’ data plan.

Potential disadvantages of infotainment

This subsection charts the major disadvantages of modern infotainment applications, such as creating distraction for drivers. It also exclaims that such dangers may lead to the formation of some legislations, although their implementation will remain largely voluntary. For instance, the National Highway Traffic Safety Administration (NHTSA) in the US has proposed guidelines to avoid text messaging, playing games and web browsing in the front seat of a moving car.

In-Vehicle Infotainment Head Unit

This section first defines In-Vehicle Infotainment Head Unit Application and then explains how OEM mirroring systems have resulted in users swaying away from the proprietary infotainment systems. It then discusses some business entities (like GM) which are developing in-house infotainment systems to tap into the revenue opportunity and goes on to describe the benefits of proprietary infotainment systems for OEMS (like allowing more data collection).

It then talks about smartphone mirroring as one of the largest competitors to OEM In-Vehicle Infotainment systems. It also explains how OEMs have also started to collaborate with mobile network operators such as AT&T and Verizon to offer in-vehicle Wi-Fi.

It goes on to explain that although most embedded infotainment systems focus on providing information and entertainment during vehicle operation, the increasing adoption of EVs and the need for drivers and passengers to stay engaged during lengthy charging stops have resulted in diverse infotainment options. It then reveals how the increasing adoption of autonomous vehicles will spur the development associated with EVs. This section also provides a few examples of relevant IoT deployments in this application, such as Mercedes Benz bringing customising voice to automobile infotainment systems.

In-Vehicle Infotainment Aftermarket

This section lists some of the third-party vendors (like Pioneer and Clarion) who provide aftermarket infotainment head units and explains the benefits of pairing aftermarket devices with smartphones. It claims that the market for aftermarket infotainment head units is dwindling, resulting in vendors either ceasing operations or looking for alternate revenue sources. It then talks about Wi-Fi hotspots, charts their features, and discusses why they are used by consumers. It also discusses why aftermarket devices are used by fleet operators as well. For instance, these devices allow workers to access the internet using a single unified platform across different vehicles.

The section also provides an example of relevant IoT deployment in this application, like Motrex bundling connectivity with its in-car infotainment systems. It also lists a few examples of products in this application including Pioneer DMH-ZS9350BT and Kenwood DNX577S.

Key vendors for In-Vehicle Infotainment

The key vendors section lists some of the main providers of products and services related to the In-Vehicle Infotainment market, such as Denso Corporation, Alpine Electronics, Harman International, Kenwood Corporation, Mitsubishi Electric Corporation (MELCO), and Continental AG. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.

Market forecasts for In-Vehicle Infotainment Application Group

In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:

Devices

The report charts the growth in the number of devices, which will grow from 16.4 million in 2023 to 51.6 million in 2033.

Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.

Technologies

Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.

This section discusses which technologies will be used in the in-vehicle infotainment application group.

Revenue

This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the In-Vehicle Infotainment Application Group will grow at a CAGR of 14%.

  • Alpine Electronics
  • Amazon
  • Apple
  • Audi
  • AutoPacific
  • BMW
  • Continental AG
  • Denso Corporation
  • Ford
  • General Motors
  • GM
  • Google
  • Harman International
  • Hyundai
  • Kenwood Corporation
  • Kia
  • Mercedes Benz
  • Mitsubishi Electric Corporation (MELCO)
  • Montrex
  • National Highway Safety and Traffic Administration (NHSA)
  • Nissan
  • Pioneer
  • Rivian
  • Sony
  • Tesla
  • Toyota
  • Toyota
  • Volkswagen
  • Internet of Things
  • Hyperconnectivity